Local retail petrol prices could be adjusted daily instead of every fortnight in the future, Do Thang Hai, Deputy Minister of Industry and Trade, said.

In 2015, the market saw 18 adjustments to petrol retail prices, including 12 reductions and six increases.

Hai told a press conference in Hanoi on January 12 that the most significant achievement of petrol-trading control last year was to ensure transparency and publicity. In addition, the management closely followed the changes of the market.

"However, daily price adjustments depend on the ability of local petrol traders and post check-ups by State management agencies to ensure the operation (runs smoothly)," he said.

In 2015, the market saw 18 adjustments to petrol retail prices, including 12 reductions and six increases.

"The formula for petrol retail prices is available. The prices have been adjusted every 15 days at the fixed time of 3pm," he added.

The deputy minister said the petrol price stabilisation fund could be frozen if the petrol price surged.

In an interview on VTV held last week, Minister of Finance Dinh Tien Dung said domestic retail petrol prices fell by only 12 percent, while the price of global crude oil dropped by 40 percent due to the price difference between crude oil and retail petrol. The petroleum price depends on several factors, such as processing, transportation, reserve and the relevant taxes.

Dung said calculations showed that crude oil costs accounted for 40 percent of the retail petrol price and 50 percent of the oil price.

In the petroleum structure, taxes and fees such as imported tax, special consumption tax, environment protection tax and value-added tax accounted for up to 50 percent.

According to the basic price announced by the Vietnam Petroleum Association earlier this month, total taxes and fees levied against the retail petrol price were 8,214 VND per litre out of 16,030 VND per litre, or 51 percent of the total retail price.

The retail petrol price could be reduced further when the petrol import tax cut assured by the ASEAN goes into effect. However, the environment tax will increase by 300 percent from 1,000 VND to 3,000 VND per litre at the beginning of May.

The finance ministry affirmed that the increase in environment tax would not drive up the price of petrol.

VNA